an extended child tax credit (CTC) is being provided by the federal government Families that meet certain income requirements, $3,000 for each eligible child between the ages of six and 17, and $3,600 for children under six for the 2021 tax year. Half of this payment will be distributed in monthly deposits, while the other half will come as part of the 2021 tax refund.
As a result of these monthly payments, parents receiving CTC funds were 33% more likely to add $100 to savings, and need to “significantly reduce their savings balance” in August 2021 compared to August 2020 was 18% lower. new data from saverlife.
“When we polled our members to find out how they were planning to spend CTC payments, most of them said they were spending on day-to-day needs. ” “Our analysis of bank account data supports this. People are spending it on auto transportation, clothing, groceries and utilities.”
If you’re struggling to make payments and need more income, you might consider taking out a personal loan while interest rates are low so you can pay off expenses or reduce high-interest debt. With Credible, you can compare personal loan rates from multiple lenders without affecting your credit score.
Low-income households use CTC cash to hold
According to the study, parents spend more money in every major spending category than non-parents. This trend became more pronounced in July and August as low-income households used additional CTC cash to cover their expenses.
But the purchases being made are temporary. When surveyed, 89% of recipients said they know that the monthly Child Tax Credit payment will end next year and they are spending accordingly.
However, the survey respondents also said that if the credits are made permanent, it will be easier for them to cope with the day-to-day expenses and they will be able to pay for their children over a longer period like tuition, better education. will take steps to pay the costs of home and starting a college fund.
If you need more help to cover your day-to-day expenses or want to reduce other high-interest debt, you can take a personal loan while interest rates are at their all-time low. Huh. Visit Credible to know your personalized rate And see how much you can save.
Steps to be taken if you are struggling financially
CTC is available for parents who earn up to $150,000 as a married couple or up to $112,000 for those filing as head of household. Eligible families receive up to $300 in monthly child tax credits per child under the age of six, or $250 in advanced monthly payments for each child between the ages of six and 17. This is the biggest child tax credit ever. according to the White House.
“The new child tax credit implemented in the US rescue plan is only for 2021,” the White House said in a statement. “That’s why President Biden firmly believes that we should extend the new child tax credit for years and years to come. That’s what he has proposed in his own right.” american family plan“
But for now, if you’re struggling financially, here are some steps to consider:
Make sure your information is up to date
Using the IRS Advance Child Tax Credit Payments in 2021 PortalMILF Americans can:
- Check if they are enrolled for payment
- Cancel enrollment with payments
- Update their bank account and postal address
- view their payments
But in the coming weeks, users will also be able to use the portal to update their 2021 circumstances that would change their payment amount, such as the birth of a new baby. Currently, there’s no date for when it will be available, and previous guidance said it would be available in late summer.
Non-filers should submit their information
If you don’t file taxes but think you may qualify for child tax credit payments in 2021, you’ll need submit your information to the IRS. That’s because the IRS is getting their information for tax credit advance payments from 2019 and 2020 tax returns, depending on what data was available at the time the payment was issued.
Apply for Personal Loan
Consider applying for a personal loan if you don’t qualify for additional Child Tax Credit payments, or if you do but still need additional financial assistance. Because of today’s low interest rates, Americans can apply for personal loans and consolidate other high-interest loans to save money. Get in touch with a trusted personal loan specialist to talk to And get all your questions answered.
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